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Health care costs slow business expansion


health care costs

According to a new survey by health insurance company HealthPartners, health care costs are the biggest obstacle to business expansion for Minnesota businesses.

Almost two-thirds of companies said health costs jumped 10 percent or more in the past two years, with a quarter reporting costs increasing by more than 20 percent

Many employers blame employee lifestyles for the cost increases.  Seventy-one percent said their workers had poor health habits — not exercising enough, not eating enough fruits and vegetables, or smoking.

According to the survey, employers are resorting to a variety of tactics to lighten their health costs. About 60 percent are increasing employees’ share of costs through higher premiums, co-pays or deductibles.


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